tv Taking Stock With Pimm Fox Bloomberg September 25, 2014 5:00pm-6:01pm EDT
this is "taking stock" for september 25 2014. the world is not moving fast enough in its fight against ebola. we will be speaking to nigeria's ambassador to the united states. the adaptation of drones are deftly dating speed. -- definitely gaining speed. we will talk all things drawn street stock seeing a quick
decline led by apple. equities following the most in eight weeks. first up, headlines with bloomberg news. the u.s.ad informed government about the possibility of an attack against the country's subways. the prime minister said islamic state extremists captured in this country have been planning such an event. the obama administration has not confirmed any plot. the business front, nike stock , beating estimates. worldwide future orders are up 14%. juststs and -- estimated 10%. saul stocks fall for percent. devices is of the extremely rare. those are the top headlines. back to you.
>> let's get more on stock selloff. billion as a market strategist, the company's private client group. he comes to us from across the river in new jersey. a tough day for equities. we saw the selling across the board. what does this tell you about the environment? >> reminds us there is risk in the environment. more than 1000 days were the market has gone without a correction. we have seen good fundamentals during that time. by the way shoes do matter. the other thing that is critical to watch is what is happening with the dollar. you have a strong move up in the dollar and inflation expectations. this has everything to do with it i think that is getting tougher or tighter in terms of monetary policy in comparison with other central banks. upward pressure on the dollar is contributing to the jitters. it's not to mention everyone has
been talking about a correction. it will be healthier for the market if we get a fullback, whether it is 2% or 4%. better?at be >> if you look at multiples, we are at 10% or so where multiple should be. valuations may be about where they should be. if you look at the returns in stocks, over the last couple of years, the last round of qe kicked in, it has been well over 20% per annum. that is not a gimmick can be sustained indefinitely. au actually want to have market that has highest discipline. if they get out of control we have a bubble. it can be sloppy and difficult. we like to see a market that is mindful of the fact that risk exists and that net valuations matter. >> one last question. what are you going to watch for in terms of whether or not this is a long protracted decline?
>> we have constructed a barometer that looks at a wide variety of data points. durable goods, that was a decent number. we had a housing number that was decent. you have to look at a broader array of data. over, if to roll valuations got more out of hand and where we are, that would be a problem. barring either one of those things we will see long equity. >> thank you. market strategist. eric holder is stepping down. the president announcing his resignation in the last few minutes. peter cook with more on his departure and what it means. it has been talked about for some time. why now? >> what we heard from the attorney general and the president that he came to him in june -- in the summer and said it is six years, it is time to move on. he is one of only three members
still serving from the start. it is a tough job. nobody is totally surprised he wants to move on. the question is how long he will have to stay for the present to find a successor. department,t the civil rights, high profile terrorism cases. he is probably best known for the prosecutions on wall street or the lack of prosecutions. his department would argue they have had major multibillion-dollar settlements with major banks in the last couple weeks. a short time ago the president praising attorney general holder and the attorney general looking back at his time and thinking the president, someone he has known for a long time. like i want to thank you, mr. president, for the opportunity you gave me to serve and for giving me the greatest honor of my professional life. we have been great colleagues.
the bonds between us are much deeper than that. in good times and in bad, and personal and professional, you been there for me. i am proud to call you my friend. >> one of the lasting images for eric holder, his legacy issue may be the role in the ferguson, , heading touation missouri to help diffuse the situation. that may be the legacy -- lasting legacy. he is a controversial figure. there are many republicans least he is going. >> let's talk about a possible replacement. the list seems to be long. you have two more years and this term. whoever it is has to be confirmed by the senate. the new year can be a challenge. some of the names, pete within the administration, james cole
at the justice department. er, thene rommel o solicitor general, very familiar to the administration. yet other people outside of washington getting mentioned. the california attorney general is one name to watch. loretto lynch, in the new york area. .ighly regarded another name to watch in terms of possibility. >> thank you. peter cook, joining us from the nation's capitol. obama addressed the crisis surrounding the ebola virus. the president called the disease a threat to the world. >> this is more than a health crisis. this is a growing threat to regional and global security. liberia, in syria, public
health systems have collapsed. growth is slowing dramatically. if this epidemic is not stopped this disease could cause a humanitarian catastrophe across the region. like the outbreak has hit liberia hardest and affected other countries, killing 2900 people and affecting 6200. one of those is nigeria. its ambassador to the night it states joins us now from washington. nice to have you here on "taking stock." can you update us? >> i'm happy to report that just yesterday my president declared that nigeria is now ebola free-trade this is a result of well calculated measures by my government to prevent the spread
of the virus. throughto nigeria somebody from liberia who was starting to attend a conference. the source was located and all those were affected were quarantined and given appropriate treatment. a campaign tot, inform people about what ebola means, the early sickness, and to take good measures to prevent the spread of the disease. the measures were mounted at airports and enter point. they are not allowed to come into the country. >> when you talk about what you are doing in your country, will what are the mistakes you think others are making? >> basically the problem is that
it is not immediate compay in. -- immediate campaign. they are affected by a long civil war. the structures in those countries are not as good. why, the way to contain the virus does not exist. i am glad the american government is taking measures to help in that area. my government is also helping. successfulve a campaign we are taking steps. [inaudible] given the government, 3.5
million dollars, another $80 million, to help the affected countries in west africa, and and tell them how to combat the virus. >> but boko haram in nigeria, we were all very upset about the story earlier this year by the 300 girls and young woman taken from the school. most of them have still not come back. what can be done to contain the extremists in nigeria? >> a lot has been done to do that. , we areures to de-rail trying to ensure that those girls will be released and mustfore the government ensure they catch them. a campaign is
being conducted to ensure that people are not recruited to but boko haram. unpopulararam is very in west africa. the point is that the people of the area are not supposed to be with -- are not supposed to support both boko haram. boko haram is no longer a local movement. it is a second branch of the worldwide al qaeda movement. we will be asking for support to combat but boko haram. the last two days there have been major advances. that in a couple of
days but boko haram will come to an end. we are close to getting those girls release. but we have to leave it at that. i know it is a serious issue we are country great we appreciate your time today. the u.s. ambassador to nigeria. the faa approves the first commercial drone use in the continental united states. why it is a big win for six hollywood production companies who want to use drones to shoot video from the sky. stick around. ♪
association for unmanned vehicles. welcome to taking stock. a big move by u.s. officials. on.hank you for having me >> talk to us about this development and what it means for the folks of your association. you have members like boeing and lockheed martin. time there aret commercial applications in a wide manner for the oven unmanned aircraft system. the thing that flies as part of it. carries,ad, the camera and the operator make up the system. now the movie industry, these companies have been authorized to go forward and use this technology at specific applications moving closer movie says that will allow them to do their job and effective and life-saving way. >> the faa is working on more
restrictions, rules regarding drones. in terms of what we got from them today how does that set the tone for what we might hear later on? >> to fly in the national airspace for a manned or unmanned system is about safety. today the movie industry has proven the case that says we can operate unmanned systems safer than we can manned systems. if you look at the history of the movie industry and the helicopter incidents and that they have had to make filming, by using an unmanned system you don't have a down watch, the noise, and you can get those tight shots you want to get, but you couldn't have because a man was put in jeopardy if he flew that low. now the faa says you can do it safer by using an unmanned safe -- system. >> more safely. there are issues to figure out,
whether it is privacy concerns and safety issues, like a congested city like new york city. >> that is true. you are not operating the systems and populated areas. that is going to be further down the line. exemptions at 47 submitted to the faa, seven have come from the movie industry. things for granted approval today. that is why it is a watershed event. we have a blueprint of what is going be necessary to use this technology in a safeway. what has to take place, these companies have the authorization , if they're going to do a shot in california for a particular movie they would have to get a certificate of authorization for that particular site to utilize that technology. >> 40 seconds. germany, a remote island, delivery of medicine, that is a significant development. our other government setting the rules for drawing usage?
is the u.s. playing catch up? >> this is a global capability. other countries because they have less restrictive rules in place are allowed to fly these. it is not a question of who went first, but that it proves that this technology can make a big difference in the quality of human life. this is a situation where they're going to deliver medicine, food, water, things of this nature that would have been restricted. this technology is so big and has a great future. >> and a lot more to come. thank you so much for your input. thank you. drones were initially developed by the military. coming up next we will have insight on the secret origin of drones and how they were revolutionized warfare. ♪
>> drones have revolutionized modern warfare. they are being used in air strikes against. . the future of the drug was once and out. now is that books whittle.richard i'm assuming from the research the announcement today about drones and being used for hollywood's usage is not a surprise to you. fact i think this is the beginning of the faa beginning to get a handle on a
technology that has been outstripping their ability to regulate it. my book tells the story of the editor, the first drone used in targeted killings by the united states. the first drone rig for remote control. i believe the drone that open the door to the revolution we are seeing today. there was a time when unmanned aerial vehicles, as the experts would like to call them, they were a niche technology. the creditor changed everything. led to this technology that has -- that we need to get a handle on. >> you talk about this in your book redraws were once in doubt. >> the military have been trying to use drones at one kind or another since world war i. they had planes called the aerial torpedoes they tried to
build. there were target drones used in world war ii to make the aircraft gunners. there were jet powered drones that took pictures. some were even armed. they weren't very good read the average for missions apiece. the creditor changed everything. the story i tell my book about why everything changed is the creditor-- is the someone decided we to killend a predator some of them on the 40 killed more americans. they did the testing. i tell that story. that is how the revolution began when that armed editor was used, .
ignition keys make it stop and move. aware of one minor accident. general motors has been upgraded to investment grade status. the s&p says the company will remain strong over the year even after recalls. fair home funds was unable to .ome to terms with state joan they been looking to borrow more money. >> thank you. after the store 20 year career, derek jeter is getting ready to play his last game at yankee stadium. baseball fans are worried it will rain on his parade, literally.
out the weather in the bronx. fans are definitely starting to arrive at the stadium. are people worried that we will indeed see a cancellation? earlier. were worried there was steady rain. it has led out. fans walking in, some don't even have umbrellas. they are not worried. the yankees have not announced whether they will counsel the game. it doesn't look likely. it is a big deal to people not only because it is his bid last game but people have traveled from all over the world to get here and there paying a lot of money to be here. we talked to stub hub and they say the average price for $400.t's game, the cheapest seats were $250. a lot of money is at stake the people have been traveling here.
no one wants to see this canceled. certainly not baseball fans who have been watching him for 20 years. outsides a lot of fans the new york metro area. tell me about those $400 tickets. what happens to those if the game indeed does it canceled? ? >> there is more rain in the forecast. people are talking about whether the game could be canceled. the ticket exchanges would refund customers $12 million in ticket sales. they could lose $1 million in commissions. this creates huge problem for them. a nightmare to refund everyone. original ticket holders would get a ticket to a game next year. there is little chance this game would be rescheduled. not only would not get to say goodbye to him tonight or at all, it would be maybe out
$1000. the most expensive sold for $6,000. it would be a big loss. >> we're going to leave it there. fingers crossed the game goes on. shelby holliday outside of yankee stadium. not everyone has heard of derek is the action more than just stocks? brandon steiner spoke with pimm fox on other items you will want to add to your collection. >> derek jeter, one of my favorite players to collect. somebody who has world series balls. have changed the look of a photo that people never seen easy guy tohe is an work with.
i collect a lot of that stuff. i'm a quirky collector. stubill find every ticket i've had since a kid. season withis last the yankees. is that when you change the financial value of derek jeter material? >> i always tell people to buy things because they are fans. this would not be a bad investment. player, an a great great person. a lot of the money does go to his foundation which does a great job. we are big supporters. we are doing an auction. we are taking these things. cleats, one-of-a-kind cleats. this is one he wore for part of the season. >> what does that go for? .ou're getting to bid
>> thousands of dollars. if you're a sneaker head this is the thing you want to bid on ebay they only made one pair of these. this was the only one he didn't wear. this can go for 10-15,000 dollars. the ones that he wore in his last season will go for $10,000 to $15,000. you can get them autographed or not autographed read we did versions where people signed the bad. brandon steiner become a sports memorabilia head? >> lucky. i was a saver and collector. the 1994 win in the cup. eli manning and peyton manning. >> you didn't start at that level. you started when you were -- >> the start of minor sports.
>> to people about that. different things along the way. for me i was always a saver and sports fan as a kid. never was i going to play professional anything. i love the players. i thought they were the best thing since sliced bread. i thought it would bring me closer to the players. i was able to get the players closer to the fans. that is what happened in the early 90's. it is been a long road to get to this point. , baseball the yankees collectibles, hall of famer's have been a big part of it. >> in your world, what has been the to-three things that you ?ave loved holding >> i love holding a babe ruth ball. i love putting sets together. the hall of famer's together in one set, hard to put together,
i'm a fan of collecting all that. i love holding championship trophies whenever i get one. i think they are beautiful. there are not a lot around. i do love sneakers. i want sneakers. ifwe have to watch our shoes you're a sports star. >> you should watch your shoes. the thing that is cool about jeter, he is stylish. his are unique and different. that is what is fun. they have a little bit of a connection to the times we are living in. 30 years ago versus today, what's acceptable is insane and fun. you will see cleats and game you sneakers on our website. >> what about your sneaker size? >> 13, if someone wants to send
me a couple of pair. my wife, be happy. but i love sneakers. i couldn't afford them as a kid. my goal when going up is to start a business and get whatever sneakers i wanted. >> walt frazier free >> the first player to have the cool sneakers. if i see a pair of sneakers i like, even if i am not sure they can fit, i have to have those. this auction has all that. i took a lot of stuff out of my collection. >> you cleaned your closet. >> we're trying to raise money for charity. sox -- pimm fox with brandon steiner. we will talk to the chief executive of a company seeking approval of a drug to treat migraines.
>> if you ever had trouble swallowing pills when you're not feeling well there may be a better way to get your medicine. a pioneer in using thin strips of film to deliver drugs that melt on your tongue, the chief executive joins us. welcome. >> thank you for having me. >> you have been in the rmb business for a long time. >> my entire professional career . >> talk to us about the drug delivery system you have created. developed three platform technologies with the focus on oral delivery, and
pretty soon discovered that oral film technology would have the greatest potential. while we are still using our technologies, we are focusing more on our oral film technology that has become our flagship. >> this technology, what exactly is it? >> you may be familiar with listerine, the thin film consisting of polymers. what we do is we incorporate pharmaceutical active molecules into these films. we do that in most cases in order to achieve a rapid onset of action. if you ever taken listerine the film disintegrates rapidly in the mouth.
with that it releases the active very rapidly into the oral cavity and makes it available for rapid absorption. feelsaine patients who the attack coming wants rapid relief for the prevention of the typical signs of migraine. that is why it is important to have rapid onset action. the film provides that. besides an injection, better than any delivery system. >> you have a treatment that uses your delivery system as well as a migraine treatment. somebody suffering and my grandma this works instantaneously? >> instantaneously. casese seen in most taking the film, the patient avoids or prevents to typical migraine symptoms
be manifesting themselves. >> you were awaiting -- you are not selling this year. you were awaiting fda approval. where are you? a completeved response letter. ourave a mishap and that supplier of our active molecule in an indian country received a temporary import ban. the fda will only approve the product once the ban has been lifted. we are working actively with that ban.ny to lift are publicly held company. you trade in the united states read investors want to know, what does this mean? he went of the other product on the market in six months? >> 2015.
it could be faster, but i don't want to promise that. it depends on how quickly our current supplier has his act laid out. >> 36 million americans suffer from migraines. how big of a market is the u.s. potentially for you guys? target market would and 500ere between 50 million. >> eventually you could use this globally. >> yes. we will. we expect to get a share of that. >> you have a competitor out there. can usenot just -- you this for a bunch of different applications. if you think about treating pads, there are different areas. how big could the market for your company? at our pipeline,
the entire market would be in $3 billion million, could be attributed to our film products. >> do you see yourself as a takeover target? >> at this point i have no interest. i have not thought about an exit. we think we are well prepared to remain a standalone. particularly as we are establishing manufacturing. >> can every treatment that he filled the deliver this way? >> the one limiting factor is the single dose. exceeds 30reatment milligrams, that would be the limits of what we can formulate into a film product. >> we will keep an on what your company is doing. thank you for your time.
the chief executive. for smalltime health nuts? it is a $6 million industry area we will speak to one of the largest gluten-free pizza makers. u.s. government warning of any security on her ability that maybe worse than the heartbleed bug. it is affecting apple mac operating systems. find out about it at 6:00 and 11:00 on bloomberg west. ♪
available in 8000 stores in 50 states. we are joined by the company's chief executive. welcome. gluten-free, there aren't a lot of momentum's for these products. what made you do it? motherhigh school, my had taken everything out of her diet. she said you can get more fit on the tennis court, take this out of your diet and see what happens. i lost 20 pounds in two months. a huge transformation. my energy, my focus. to eatust going gluten-free and dairy free. the issue was there for quality products out there that i was used to prior to making the change. >> that is a big leap. going from someone who is going to eat healthier, to someone who is creating a company selling an 8000 stores. >> i always had the idea in my mind.
i never thought i would be in the pizza industry. thought i can get an a in the class if i have a gluten-free pizza concept. it wasn't until i did the research and partnered up with an award winning chef. >> howdy partner up with an award-winning chef? >> i got connected to him in st. louis through the university. he had won a bunch of awards. can you make me a pizza that is free of these things that taste better than regular pizza? he said i will try and read he was able to do that. >> how many stores are you in? >> 8000 stores. >> talking about the growth you are seeing. >> we launched 2012 with gluten-free pizzas. everyone can go on our website to check out our range. specifically the gluten-free organic. everything is in the store. we sell and retail, walmart,
sam's club, kroger, whole foods. we are about to launch a huge promotion with kroger for the super bowl. >> it sounds like you sell a lot of pizza, are you profitable? >> yes. we are running this with three people. ve been able to run it quickly, not using the capital most have to grow. calories, howhe big is that high? like 10 inches in size. i would eat half of it and a salad. we have seen people people whole thing. on how hungry you are. >> i'm usually pretty hungry. from here? pizza is great. are you going to do more products? >> yes. retailers have come to us to be
the next better for you frozen food. we have had a tremendous amount of success. now it is about to get brand awareness out there. we will be launching the first pizza pockets certified organic. a really clean label and something that is going to be great to serve yourself and your kids. >> anything beyond pizza? >> the early next year, entrées .nd pizza snacks the frozen italian section of the store. >> you are growing. thank you. the hour.inutes past time for on the market. tons of -- a bunch of selling. dow jones industrial average climbing 1.5%. nasdaq closing at 44. the biggest decline, 2% for thursday trade. they give for watching.
♪ live from pier three in san francisco, welcome to "bloomberg west." i'm emily chang. ahead this hour, apple fires back at critics over so-called bengate. only nine it received complaints from customers about their iphones bending and says it subjects the phones to rigorous tests. that has not stopped the stock from plunging today. the u.s. government is warning of a new security flaw that may be worse than the heartbleed bug. at least 3000 systems could be impacted by this